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Exclusive: From Humble Beginnings, Suhail Bahwan Became A Billionaire In Oman

Suhail Bahwan and his daughter Amal Bahwan. Photo: Courtesy of Bahwan Group

At 78, Suhail Bahwan is no longer the young merchant who once captained a wooden dhow on the Indian Ocean; nor is he the fledgling entrepreneur who once hawked fishing nets in Muscat’s Muttrah Souq in Oman.

So last year, the chairman of Suhail Bahwan Group turned to his daughter Amal Bahwan, ceding to her much of the responsibility for managing the operations of an enterprise that generated $4 billion in revenue in 2016. It is one of the largest privately-owned companies in the sultan­ate of Oman (population: 5 million), with interests in fertilizers, oil and gas services, and car dealerships, among other sectors.

One could forgive Bahwan for want­ing to step back and enjoy the rewards of a hard-earned fortune Forbes Middle East estimates at $4.1 billion. These days he splits his time between Oman, Saudi Arabia and Europe, traveling around in his Gulfstream jet.

He regularly checks in with his daugh­ter, whom he entrusted to tell the family’s story. “He likes to know everything,” says Amal Bahwan, who’s 45. From the windows of her elegantly furnished office in Muscat, her father’s massive white stone villa is visible, perched on a hill overlooking the capital’s modern Qurum district, its silhou­ette framed by the blue waters of the Gulf of Oman. “I learned everything from him,” she says. “That’s why today I am in business.”

At heart is the story of a father-daughter relationship, played against the backdrop of a conservative society. She is Bahwan’s sixth child out of a brood of 15. Amal’s brothers Ahmed, Omar, Othman and Saad have se­nior managing roles in the group, but Suhail Bahwan had a soft spot for his second el­dest daughter. “I was the closest daughter or member from the family,” says Amal. “The family knows it.”

She rose within the company at a time of discord between Bahwan and his one-time partner, his late brother Saud, to help modernize the family business and steer it from a licensed distributor for more than 500 foreign companies to a major producer of fertilizers and chemicals. Fertilizers are the group’s biggest earners today.

The company has a plant in Oman producing roughly 1.3 million metric tons annually of urea, the raw material used to make fertilizer, feedstock and adhesives. Competing with Chinese producers, it ex­ports fertilizer to the U.S., Latin America, Australia, Thailand, India and South Africa. In Algeria, the group has another urea plant on the verge of completion, developed through a joint venture with the state-owned oil company Sonatrach. (By comparison, OCI, run by Egyptian billionaire Nassef Sawiris, is capable of producing 3.2 mil­lion metric tons of urea per year.)

The Suhail Bahwan Group is turning into a large producer of urea—the raw material used to make fertilizers. Photo: Courtesy of Suhail Bahwan Group

The growth of Bahwan’s fertilizer business—encour­aged by lower gas prices (natural gas is used to produce urea), comes as Oman’s ruler Sultan Qaboos is attempting to diversify the economy by reducing its dependence on oil, like the rest of the Gulf countries. Austerity measures will most likely include cuts in government-funded proj­ects, which could hurt the group’s engineering and con­struction segments.

But, Oman is also embracing a privatization strategy that presents new opportunities. Amal Bahwan sees health­care as an area where the company can benefit. Bahwan re­cently signed a joint venture with a Portuguese firm to build a private hospital in Muscat.

The group’s diverse assets can also serve as a buf­fer against the uncertain economic climate. “Some of the group’s organizations will grow, others may prove resilient, and still others will likely take a hit from lower spending,” says Robert Mogielnicki, an analyst at Oxford Strategic Consulting, which focuses on Gulf countries.

As Suhail Bahwan entrusts his legacy to the next genera­tion, the business is far removed from its humble beginnings. But, everywhere there are small reminders of the past.

In his private sitting room at the company’s headquar­ters, antique muskets and oil paintings of dhows adorn the walls. On a table next to his reading chair is another relic: a small, aging photograph of Bahwan standing shoulder-to-shoulder with his younger brother Saud.

It’s a snapshot of simpler times.

Bahwan was born in Sur, a small seaport along a barren stretch of coast one hundred miles southeast of Muscat. It’s near where the Strait of Hormuz widens into the Indian Ocean, which made it for centuries a conve­nient waypoint for ships sailing between India, Iraq, Zanzibar and beyond.

Bahwan was born into a large family, so large that Amal Bahwan isn’t sure how many aunts and uncles she has. He and Saud accompanied their father on sailing trips to sell dried dates and fish in exchange for rice, sugar and other sundries.

Bahwan attended primary school in India, but dropped out after sixth grade. His father put him in charge of a dhow. On voyages, he haggled with merchants from dif­ferent corners of the world, picking up early lessons in spotting good deals.

By then, Sur was in the twilight of its golden days as a transportation hub. The world was changing. The Suez Canal, opened in 1869, upended traditional trade routes and mod­ern, faster ships were making dhow traders largely obsolete.

Bahwan never made much money as a trader in Sur, but he was creative. “Business was in his blood,” says his daugh­ter. He took loans from Indian merchants, which he used to buy gold that he would then sell in Oman. Still, after paying back lenders, profit margins were slim.

By the 1960s, he often made the sea voyage from Sur to Muscat, where there were more opportunities to sell his wares. In 1965, Bahwan and his brother decided to move to the capital permanently. They opened a shop in the labyrin­thine Muttrah Souq, selling fishing nets and later building materials and tools.

Muscat was a world away from tiny Sur, but it was still a sleepy seaport. Oman was then ruled by Sultan Qaboos’ father, Said bin Taimur, who actively shunned moderniza­tion. The country was isolated, practically unchanged from centuries prior.

The brothers immersed themselves in Muscat’s small business community. Suhail Bahwan would drop by fel­low shop owners and businesses around town, introduc­ing himself and trying to sniff out opportunities. He at­tended social gatherings and befriended government officials, building a list of contacts. His efforts would serve him well.

Not content with fishing nets, the Bahwans were eager to obtain foreign licenses. It was with Japanese watchmaker Seiko that they scored their first major license in 1968, fol­lowed by electronics maker Toshiba. Amal Bahwan doesn’t recall exactly how the Bahwans connected with the Japanese companies, but it was good timing.

In 1970, Sultan Qaboos ousted his father in a coup. Once in power, the new ruler opened Oman to the outside world, initiating a program of modernization and eco­nomic liberalization, which created demand for consumer goods and industrial projects.

Another Japanese company, Toyota, was looking for partners in the Gulf, an opportunity too good to pass up for the brothers. They were not the only ones competing for the tender. To the north, in the recently established United Arab Emirates, the old merchant family of Al Futtaim was bidding for the contract not only in their country, but in Oman as well.

To win the bid, the Bahwans had to show they had the money to invest in a Toyota dealership. In 1974, they partnered with an Omani businessman, Omar Zawawi, to create Amiantit Oman, a pipe manufacturing company. Within a year, they were able to generate enough revenue to raise the necessary capital.

Still, Al Futtaim was the favorite—until Sultan Qaboos intervened. The ruler wanted an Omani company to oper­ate Toyota in his country.

That royal intervention helped seal the deal. The Bahwans got the coveted license in 1975. That year ships began offloading brand new Toyotas on the quays of Muscat. Within three years, the carmaker would become the automotive market leader in Oman. The Bahwan broth­ers had wind in their sails.

Over the next decade, they secured a variety of licenses from foreign companies, including Ford and equipment manufacturers Komatsu, Kubota and Bomag. They set up a travel agency, netting deals with Thai Airways, Pan Am and Air France, and started a car rental company. In 1977, they began working on infrastructure projects in construction and oil and gas. In 1984, they bought a firm that developed desalination and power plants across Oman.

By the late 1980s, the company had grown to more than 4,000 employees. It had interests in telecommunications, shipping and logistics, electronics, foods and more.

As a child, Amal Bahwan tagged along with her father at work. She would sit on the floor near his desk, playing with toys as her father took calls and met with company executives. “I am the only girl who came to the office with father,” she says.

Her father and uncle were by that time already operating largely independent of one another. Her father devoted his time to the group’s newer segments, such as con­struction and engineering, while her uncle was primar­ily focused on the car segment. At the end of the year, they divided the profits.

Trouble was brewing. She won’t divulge the exact cause, but in 1990 a disagreement broke out between her father and uncle. Like all siblings they clashed, but the wounds from this one festered. While Bahwan grew apart from Saud, his daughter embarked on a path to join him.

Amal Bahwan graduated from Sultan Qaboos University in 1993 with a degree in education. Her fam­ily wanted her to become a teacher; she wanted to study abroad. Her mother, a conservative woman, forbade it. She notes ruefully that her younger siblings were even­tually allowed abroad.

She worked briefly as a secondary school teacher in Muscat, but quickly grew bored. In 1995, she took a job training students for a government-run vocational program. She worked there for two years before return­ing to Sultan Qaboos University to earn a master’s de­gree in administration.

After graduating, she decided to join the family busi­ness in 1998, first working in the services department. She didn’t have a title or a salary.

The company was in disarray. In addition to the fam­ily dispute, the group was an organizational mess. The finance and human resources departments were poorly run. There was also little corporate oversight. The gen­eral managers of each segment answered to either Suhail or Saud Bahwan, but beyond that had broad autonomy.

Amal Bahwan began auditing divisions, introduced a computerized HR system and established standard company policies. Impressed, her father gradually gave her more authority and eventually a salary, after realiz­ing he had neglected to compensate her for two years.

Bahwan was laying the groundwork for a chemi­cal and fertilizer business, which materialized in 2000, when he opened a sulphuric acid production plant in the port city of Sohar. “He’d had enough of trading,” says Amal Bahwan. And, the margins were better.

Growth had been stagnant since 1990, a direct re­sult of the spat between the brothers, who had once been like twins. It was hard to sign new contracts when doing so required the signature of both men and they weren’t cooperating.

By 2002, they were fed up. Saud Bahwan picked up the phone and called his brother. They agreed to part ways. The price for ending it was Toyota. “We had to move forward,” she says.

The newly-formed Saud Bahwan Group took Toyota, while the Suhail Bahwan Group kept the original Seiko and Toshiba licenses, among other businesses; it would later win the right to distribute Nissan and BMW cars.

Saud Bahwan passed away in 2008 at the age of 68. His son Mohammed, who’s worth an estimated $1 bil­lion, now runs the company. In a statement to Forbes Middle East, the Saud Bahwan Group says “the fam­ily remains very close-knit.”

Suhail Bahwan’s urea plant was an expensive ven­ture. It took years to secure permits from the govern­ment and negotiate favorable rates for natural gas. He financed the $1.3 billion project with a loan from the Japan Bank for International Cooperation and con­tracted Mitsubishi Heavy Industries to build the plant. It became operational in 2009. He targeted Qatar as his next location, but unfavorable natural gas rates squashed the project.

Bahwan settled on Algeria, where a partnership with Sonatrach made it easier to access natural gas at an affordable rate. Suhail Bahwan Group owns 51% of the venture. He finalized the deal in 2008, but the proj­ect was beset with delays, as the country grappled with instability. Nine years on, the Algerian plant is finally nearing completion.

While her father focused his energies on fertilizers, Amal Bahwan continued tinkering with the company’s organization. Proving a knack for administration, she helped consolidate the group’s divisions. As her author­ity grew, she ran at times afoul of senior executives.

She remembers being called into her father’s office one day. He angrily read off a list of complaints against her. One of her brothers was present in the room, so she sat quietly stewing, until he left. She then let loose. “I shouted back,” she says.

Abdullah Al Suleimany, CEO of east Horizon trading llc

Sudesh

M K Janaki Raman

10 months ago

Bahwan is the best when it comes to Oman. Madam Amal Bahwan with whom I spent almost 15 years of my Career is a lady par excellence. She is a go getter and will not compromise on quality and customer satisfaction. She gave people like me who were running the organisations absolute support and it was always a pleasure to work with her. She knows when to pull up and when to pat. She is a real businesswoman who meant business always. When it comes to hospitality she is second to none and she will go to any extent to support people in need. I love the memorable days with the Group under the able leadership of Madam Amal and I will cherish the same all my life. God bless her and her family.

Krishnamurthy

Jomon Antoney

10 months ago

I have worked for this groups electronics division for 12 years. Suhail Bahwan group is really great and Madam Amal Bahwan is a commanding leader. I am sure that she can take this group to new heights. All the best wishes!!

Vipin Lal

Jomon Antoney

10 months ago

I have worked for this groups electronics division for 12 years. Suhail Bahwan and his group companies are simply great and Madam Amal Bahwan is a true leader. I am sure that she can take this groups business into new heights. All the best wishes!!

Rickfin Herbert

10 months ago

Its been such a pleasure to work with Suhail Bahwan Group company leading by Madam Amal Bahwan. The caring and concern for every employee .The honesty ,openness,and support we receive from our leaders everyday is simply unmatched.The feeling that I am needed,I am important,and that my opinion not only matters, but is appreciated .

Mathews George

10 months ago

Proud to say that I could work in Suhail Bahwan group for 7 years and wishing all success to Shaikh Suhail Bahwan and Madam Amal Bahwan (Our Chairnman and Director during those times). It was a great experience and we had a wonderful team. I am glad to accept that I could learn many things in career and ironed out my management skills from Bahwans.

Ophelia Lazarus

10 months ago

Very inspirational story of hard work, determination and perseverance and belief in oneself. Tip my hat in salute to Ms Amal Bahwan truly a woman of substance, more power to you Ma’am. Looking forward to seeing the Bahwan Empire going forward under your wise leadership. God bless!

Tony C D

10 months ago

Lovely article. It was like watching a movie. This article attracted my attention because I have a friend working for Suhail Bahwan in Muscat for the last many years. I have never seen such loyalty and attachment towards this company from anyone towards any company. I envy his pride in working for this company. No wonder why he always had so much of awe and respect towards this wonderful and enterprising lady Ms. Amal Bahwan. My best wishes to her and Suhail Bahwan Group! My respect to Mr. Suhail Bahwan for the hard-work and perseverance that has helped and sustain thousands of families in Oman and India. God bless him and his daughter!

Shah Nawaz Khan

10 months ago

I was associated with Bahwan group’s Toyota Division from 1977 till 2007. During my tenure I saw Oman growth and also the growth of Bahwan group. I was also liked by Mr. Saud Bahwan and he was always there for me if I had some issues. He lent his support when I lost my wife due to SLE. I will till my end cherish the association with the group and the very beautiful country OMAN.

Munawar Bux

10 months ago

Awesome…..I was always sad at the split between the brothers having spent 6 years in SSB. However it has given rise to a great businesswoman like Amal in a region that is definitely not encouraging as far as women are concerned. Hats off to Sultan Qaboos and the unique country that Oman is.

Shabbir Mukadam

Henry Mark Ireland

10 months ago

Was interviewed by both Sheikh Suhail and Sheikh Said before being appointed in the group in 1987. Was indeed a learning curve to have joined a very objective driven group at the very beginning of my working career. Much respect for the Bahwan family and they have come a long long way and have contributed to the growth and development of each of their employees. We can’t thank you enough for that. Salaam’s to the Bahwan family.

Madhur Bomb

10 months ago

As the head of Healthcare Business of Suhail Bahwan Group, over the past five years I have had some wonderful memories & am sure I will continue to add few more delightful memories. This is a fantastic work place and Madam Amal Bahwan (My Boss) is a very humble person, she has the ability to connect with her staff & I cannot think of anyone in the organization who does not adore her as an individual & for her business acumen. She has the knack to convert our mistakes into lessons, pressure into productivity and skills into strengths and bring out the best in us. Her leadership skills in directing and managing a team with diverse professional background is remarkable. I’m proud to have learned some of these qualities from her.

V Sridhar

10 months ago

Very good article! I have the privilege of working in their both fertilizer plants at Sohar, Oman & Oran,Algeria. The group is highly professional & I really enjoyed working with them.The chairman is highly respected for his simple nature!I wish the group all the best in achieving many more milestones!

Tushar Botre

10 months ago

A good inspiring article indeed. I was with Bahwan-Nissan in early stages when dealership was taken up n I will always cherish those years with them, which was my 1st outside India experience. I had a previllage to meet one of the family member in a meet (along with OTE Warehouse head) n astonished to receive such a good treatment from him which I will never forget in life n obliged for my life time. May Bahwan family reach greatest hights in all their businesses.

Pv Rama Krishnan

10 months ago

It is a matter of great joy to be a part of Bahwan group for 15 long years in their Wattayah HQ & other branches in Oman . I enjoyed my work every second & learnt lots of skills. The top Management is truly cares for the staff& the working atmosphere was pretty pleasant. I will consider my days in BAHWAN as one of the most fortunate circumstances in my life. I had worked for MAN spare parts & TBA Dept.

Muzammil

Surendran K C

Madhu

10 months ago

Inspiring article on Sheikh Suhail Bahwan. Being worked in the organisation , feel that the organisation structure values senior management than the lower level employees who strive had for uplift of the company.

Ramachandra Raju

10 months ago

Presently I am working in that Fertilizer plant in Sohar. I felt very happy to read the information about the great person ie., our group chairman’s life and his rise in the business field. I was lucky to meet him once in our plant. He was looking very simple. Thank you very much for the article.

Radhakrishnan Balakrishnama Raja

Ponnuraj

Rashid Alruzaiqi

10 months ago

Humble indeed, a charter that earned his intelligence and business leadership through a vast experiences. A person who have lived the hardships in the past and navigated his business into the modern technical world we live today. A biography that should be written for many to be inspired. A truthful person who has participated in the development of his country and build it into the future. A community individual who has given the hand to many and enlightened their life’s through his help in education, health, social sector and many endless programmes. His generosity has further crossed the boundaries of his country and left a mark through out the world. Always he quotes that the money is being trusted in his hands and through his numerous charities he actively participated. His legacy will go on and on and May Allah Bless him with a flurishing health and omran madeed. and along the many endless prays of many individuals of which his generosity has touched them. As well as his legacy will live on through his children’s to continue the work of their beloved father. May Allah bless you Shaikh Suhail.

Lovepreet

Premchand

10 months ago

I was part of Bahwan Group for 33 years from April 1980 to March 2013. I have witnessed the growth of the company from the starting till the current position and the hard work put by our most respected chairman Shaikh Suhail Bahwan. I was in our Chairman’s office almost 10 years and enjoyed the courtesy extended by the chairman to all his staff. I am very happy by reading the article about Bahwan Group and feel pleasure of being in this group under the able leadership of Respected Shaikh Suhail Bahwan. My family and myself pray and wish the Suhail Bahwan Group to reach in top heights . We also pray God Almighty to bless Shaikh Suhail Bahwan and entire family with good health and all happiness in their life.

Sayyed shaker

Krishna Prasad Yerramilli (KP)

10 months ago

Story of vision, ambition, intelligence, hard work and value system. Congratulations to the group. I was part of the initial set of employees of Bahwan CyberTek – a business venture that reflected Suhail Bahwan group’s vision to play the tech industry vision. Enjoyed working.

J.srinivasan

10 months ago

I had the honor of working for both the groups​. 1992_94 for sound Bahwan group selling Toyota vehicle and 1996 – 2001 selling Building materials. I got everything form the group money, experience, good times and best of friends. All possible because of the two brothers hard work, great vision and the belief they had on their employees. Salute to them

Subin

Luciana Fernandes

10 months ago

One important point was missed out and that is the brothers Suhail and Saud Bahwan are the biggest benefactors of the poor in Oman and the greatest philintrophist. May God bless them and their families with good health and peace of mind always. I feel the staff members of the Bahwan Companies were always very lucky as they had all the facilities housing, medical and family, in place when they joined the company. This is a huge responsibility which the Bahwan Group never backed out on and the Staff should feel themselves privileged and blessed to work for such benevolent employers. I vouch for all this as my husband worked for the Saud Bahwan Group. Oman was my home away from home, in fact it was a Haven for us where we felt very safe and cared for. Oman, you will always be in my prayers.

Moin Sattar

Rajaa Khalifa

10 months ago

Made me feel very positive, all comments below praise the Bahwan family which only means it’s a successful organisation, I hope one day I can follow Mr. S. Bahwan’s footsteps and create a successful organisation that could serve my country and the world, however we need a wise leader like Sultan Qaboos.

Abdullah Al Suleimany, CEO of east Horizon trading llc

10 months ago

One main thing that impressed most is that it was his Majesty who was the key contributor towards Bahwan getting the local Toyata Agent as well as retaining the In Country Value ICV where it has benefited not only Bahwan but also huge number of Omanis who were equally benefited. Credit should also be given to Bahwan Family who has taken the responsibility not only to enrich themselves but also able to build and invest in Oman as part of infrastructure development. The challenge to Amal Bahwan and her brothers & cousins is how you gradually raise and develop the skilled Omanis to a higher positions so that the wealth is localised distributed. Abdullah Al Suleimany CEO of East Horizon Trading LLC

Nafeesa

10 months ago

It was a delight to read this article.. Brought back all the memories of what my dad Mr. Ghouse Ahmed Khan proudly mentions till date about the legacy of Mr.Suhail Bhawan & his respectable family.. What I truly admire about him was a brief meeting we had during our trip to umrah (2003) where he humbly apologied to us for being few mins late. Honestly the greatness of a man is not just the wealth & fame he earns but the humbleness & goodwill one has. He is truly a man who will be talked about by many for many centuries to come for all his goodness. Great nations can only be made by great & good minds like Suhail Bhawan Group..

Ajay Rane

Nafeesa

10 months ago

It was a delight to read this article.. Brought back all the memories of what my dad Dr. Ghouse Ahmed Khan proudly mentions till date about the legacy of Mr.Suhail Bhawan & his respectable family.. What I truly admire about him was a brief meeting we had during our trip to umrah (2003) where he humbly apologied to us for being few mins late. Honestly the greatness of a man is not just the wealth & fame he earns but the humbleness & goodwill one has. He is truly a man who will be talked about by many for many centuries to come for all his goodness. Great nations can only be made by great & good minds like Suhail Bhawan Group..

Abdulrauf Allauddin

10 months ago

A great History.. Every Big thing has Small Beginning and thus feeling proud when reading the History.. even I now Dream too to work for this company, Hope my dream come true some day.. All the best Madam Amal Bhawan, You are the best.. May Allaha grant you all the Success.

Mihaela Ferrari

10 months ago

Great to see the open-minded attitude and an example for many companies to follow. In this case it is a father – daughter relationship and I would want to believe that chances are offered to women based on capabilities and skill set, not gender such in this case.

Norman

mckumar

10 months ago

Remarkable journey…with humble beginning to such height..sheer hardwork and vision..he has not only become billionaire but also has given careers to fellow omanis and expats. the most reputed company in the region..